The British economy has encountered a period of stagnation, as evidenced by the latest data from the Office for National Statistics (ONS).
Initially reported to have grown by 0.1% in the third quarter of 2024, revised figures now indicate that the economy experienced no growth during this period.
Several sectors, including hospitality, legal services, and advertising, have underperformed, contributing to this economic slowdown.
Whilst the household saving ratio has seen a slight decrease, it remains comparatively high when viewed in a historical context.
Additionally, real household disposable income per capita has shown no improvement.
The Confederation of British Industry (CBI), a prominent business organisation, has expressed concerns based on its recent company survey, suggesting that the economy may face significant challenges.
Kate Nicholls, Chief Executive of UKHospitality, said: “These revised growth figures confirm what we already suspected – that the economy is in a fragile place and in dire need of growth.
“But with business confidence already plummeting and a third of hospitality businesses operating at or below break even, the planned changes to employer National Insurance Contributions will make generating economic growth even more difficult.
“Hospitality is hit disproportionately hard by the changes, particularly the lowering of the threshold, and the £3.4 billion in costs hitting the sector in April will impact jobs, investment and business viability.
“That’s why we urgently need the Government to rethink its approach. Delaying these changes to allow for proper consultation and engagement with businesses is much needed to protect hard-working venues and team members.”
